Goodwill and other identifiable intangible assets
Changes in goodwill during the years ended December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| In millions | Gas Cylinders | | Elektron | | Total | |
| At January 1, 2024 | $ | 26.2 | | | $ | 41.3 | | | $ | 67.5 | | |
| | | | | | | |
| Exchange difference | (0.3) | | | (0.2) | | | (0.5) | | |
| At December 31, 2024 | 25.9 | | | 41.1 | | | 67.0 | | |
| | | | | | | |
| Exchange difference | 1.6 | | | 1.0 | | | 2.6 | | |
| Net balance at December 31, 2025 | $ | 27.5 | | | $ | 42.1 | | | $ | 69.6 | | |
Accumulated goodwill impairment losses in relation to continuing operations were $8.0 million as of December 31, 2025 and 2024.
Changes in the gross value of identifiable intangible assets during the year ended December 31, 2025, were as follows:
| | | | | | | | | | | | | | | | | |
| In millions | Customer relationships | Technology and trading related | Total | |
| At January 1, 2024 | $ | 15.2 | | $ | 7.8 | | $ | 23.0 | | |
| Additions | 0.4 | | — | | 0.4 | | |
| Exchange movements | — | | (0.1) | | (0.1) | | |
| At December 31, 2024 | $ | 15.6 | | $ | 7.7 | | $ | 23.3 | | |
| | | | | |
| Exchange movements | — | | 0.5 | | 0.5 | | |
| At December 31, 2025 | $ | 15.6 | | $ | 8.2 | | $ | 23.8 | | |
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| | | | | |
Identifiable intangible assets consisted of the following:
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| | December 31, 2025 | | December 31, 2024 | |
| In millions | Gross | | Accumulated amortization | | Net | | Gross | | Accumulated amortization | | Net | |
| Customer relationships | $ | 15.6 | | | $ | (7.6) | | | $ | 8.0 | | | $ | 15.6 | | | $ | (7.0) | | | $ | 8.6 | | |
| Technology and trading related | 8.2 | | | (5.3) | | | 2.9 | | | 7.7 | | | (4.8) | | | 2.9 | | |
| Total identifiable intangibles | $ | 23.8 | | | $ | (12.9) | | | $ | 10.9 | | | $ | 23.3 | | | $ | (11.8) | | | $ | 11.5 | | |
Identifiable intangible asset amortization expense in 2025, 2024 and 2023 was $0.8 million, $0.8 million and $0.8 million, respectively.
Intangible asset amortization expense over the next five years is expected to be approximately $0.8 million per year.
The weighted-average amortization period for the customer relationships is 13 years and for the technology and trading related assets is 11 years.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.